Utility Dive•8 days ago
Hybrid heating: A bridge to decarbonization or a road to obsolescence for gas utilities?
Key Takeaway
Hybrid heating represents a significant demand-side shift that will impact winter peak electricity loads, gas consumption, and require new regulatory and financial structures, influencing grid planning and generation asset utilization.
AI Summary
- •Hybrid heating (heat pumps combined with gas furnaces) is presented as a key strategy to manage winter electricity peaks, reduce overall energy costs for consumers, and lower carbon emissions.
- •This approach directly impacts electricity demand profiles by potentially flattening winter peaks and shifting load from gas to electricity, affecting both gas utility revenues and grid stability.
- •Successful deployment requires well-structured regulatory frameworks and cost-recovery mechanisms, indicating a need for policy engagement and potential new utility programs that IPPs and large consumers should monitor.
- •For developers and large power consumers, this trend suggests evolving demand patterns, potential for new demand-side management programs, and shifts in the economic viability of gas versus electric heating infrastructure.
Topics
capacity-marketccgtemissionsfinancingpolicysimple-cycle
Article Content
Combining heat pumps with gas furnaces can help manage winter peaks, lower energy costs and cut carbon emissions. But this approach requires well-structured regulatory frameworks and cost-recovery mechanisms, West Monroe experts write.